— Japan Aug Retail Sales Pushed Up By Automobile, Fuel Sales
— Japan Aug Retail Auto Sales +18.0% Y/Y Vs July Rev +8.1%
— Japan Aug Retail Fuel Sales +11.2% Y/Y Vs July Rev +8.1%

TOKYO (MNI) – Japanese retail sales rose 4.3% in August from a year
earlier, the eighth straight year-on-year increase, following a revised
3.8% gain (preliminary +3.9%) in July, data from the Ministry of
Economy, Trade and Industry released on Thursday showed.

Continued solid sales of motor vehicles and fairly high fuel prices
supported retail sales in August and the pace of y/y growth in those
items accelerated from the previous month.

Auto sales rose for the 15th consecutive month from year-earlier
levels. Fuel sales posted the ninth straight y/y gain, although gasoline
prices have fallen week to week recently.

Retail sales have recovered from -5.7% in February 2009, which was
the largest y/y drop in seven years. In January this year, retail sales
rose 2.3%, the first y/y gain in 17 months.

The growth in August retail sales was led by year-on-year increases
in six out of seven major categories: motor vehicles (+18.0%), fuel
(+11.2%), machinery and equipment including consumer electronics
(+9.5%), clothing (+0.7%), food and beverages (+0.8%) and other retail
sales (+2.6%).

Meanwhile, year-on-year declines were seen in sales at department
stores and supermarkets (-1.9%).

Motor vehicle sales continued to be supported by tax breaks and
subsidies for buying low-emission vehicles.

The government finished providing subsidies in September, sparking
rush purchases of automobiles in August. It will maintain reduced tax
rates for buying and owning energy efficient cars and trucks.

The 18.0% y/y rise in auto sales in August was up sharply from a
revised +8.1% in July but down from +19.5% in April. The 21.0% rise in
November 2009 was the largest y/y gain since March 1997.

The 11.2% y/y gain in fuel sales in August was also higher than
+8.1% in July, but the rate of growth has slowed from +18.9% in May and
+23.0% in April. The 9.0% rise in December 2009 was first year-on-year
gain in 15 months.

Fuel sales have recovered from the record y/y drop of -23.3% marked
in February 2009.

Retail gasoline prices were on a general uptrend from mid-January
2009 until May 31, 2010, when they began to ease.

The average price of regular gasoline in Japan this week fell to
Y132.3 ($1.58) per liter, or $6.00 per gallon, from Y132.6 last week,
the 18th consecutive weekly drop. It was still higher than Y129.1 seen a
year earlier.

Sales of machinery and equipment gained 9.5% in August, marking the
12th consecutive y/y gain, thanks to the government’s reward program for
purchases of greener consumer electronics including flat-screen TVs,
refrigerators and air conditioners.

The pace of y/y gains in this category accelerated from a revised
+6.5% in July but was slower than +13.8% in April.

Other details from the latest data:

Commercial sales, or combined sales at the wholesale and retail
levels (y/y): August +2.0%, the sixth consecutive year-on-year rise,
following +0.9% in July and recovering from the record drop of -24.3%
marked in May 2009.

Sales at the wholesale level (y/y): August +1.1%, the first y/y
rise in two months after -0.1% in July and recovering from the record
fall of -30.3% hit in May 2009.

Large retail store sales on a same-store adjusted basis (y/y):
August -1.9%, the 29th straight y/y drop following a revised -1.3% in
July.

Large retail store sales, unadjusted (y/y): August -1.3%, the 25th
consecutive y/y drop after -1.0% in July.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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